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On 13 May 2025 the Commission published ten In-Depth Reviews (IDRs) as a follow up to the Alert Mechanism Report (AMR) of 17 December 2024. However, decisions on the existence of imbalances were only made public on 4 June as part of the 2025 Spring Package of the European Semester. The present note discusses those reviews and how they interact with other surveillance mechanisms such as the Excessive Deficit Procedure (EDP) and Post-Programme Surveillance (PPS) for Member States that have received ...

This briefing analyses the implementation of the new economic governance framework in its first year of application. In particular, after discussing recent economic developments (Section 1), it assess results and roll-out of the new framework of fiscal coordination and surveillance as reported by the Commission in its 2025 Spring Package (Section 2). It also describes the current state of play on the implementation of the national escape clause for defence spending (Section 3) before focusing on ...

The principle of subsidiarity requires decisions to be taken at the lowest practical level of government without, however, jeopardising mutually beneficial cooperation at the supranational level. Recent decades have seen efforts to strengthen the subsidiarity principle in EU law, including the introduction of the well-known early warning mechanism (EWM) for national parliaments. At the same time, the principle of subsidiarity remains a contested notion. This has important implications for the regulatory ...

This briefing has been prepared for the public hearing with the Chair of the Single Resolution Board (SRB), Dominique Laboureix, scheduled for 15 July 2025 in the ECON Committee. Content: 1. SRB’s 2024 Annual Report 2. Regular reporting on MREL (Q4 2024) 3. End 2024 resolvability assessment 4. New external expertise on (1) banks’ competitiveness and (2) real estate risks 5. Consultation on valuation capabilities 6. Consultation on resolvability testing for banks 7. Updated guidance on trading ...

This briefing has been prepared for the public hearing with the Chair of the Single Supervisory Mechanism (SSM), Claudia Buch, scheduled for 15 July 2025 in the ECON Committee. Content: 1. Annual Report on Supervisory Activities for 2024 2. Annual Report on Sanctioning Activities in the SSM in 2024 3. ECB sanctions against SEB Baltics 4. The SSM’s simplification efforts 5. ECB’s feedback on Parliament’s Banking Union Annual Report 6. Between prudence and politics: EBA default framework fails ...

The dollar has been the dominant global currency and the anchor of the international monetary system for over 80 years. The euro, once seen as a legitimate contender for this role, has largely stagnated in second place. This paper explains recent policy and other developments that have reinvigorated the debate about global currency dominance and discusses the viability of the dollar’s continued dominance. It then explores different possible scenarios and policy gaps that would need to be addressed ...

The European Commission's communication on a vision for agriculture and food, published in February 2025, aims to secure the long-term competitiveness and sustainability of the farming and food sector. The document consists of four distinct parts: making agriculture an attractive sector with affordable food for all, a competitive and resilient sector, a future-proof sector that is sustainable and contributes to food security, and a vibrant sector with fair living and working conditions. To future-proof ...

In this paper, we analyse potential impacts that dollar-denominated stablecoins could have on monetary policy. We also consider related questions about the introduction of the digital euro. Based on our findings, the adoption of stablecoins in Europe is unlikely to be large-scale without state support. The development of the digital euro with full state and central bank backing is more likely to succeed. To be a viable alternative to private payment options, the digital euro needs to be carefully ...

In this issue... • ECB cuts policy rates by 25 bps in June • Despite shifts away from dollar, investors demand more gold than euros • Rise of stablecoins and crypto assets may pose challenges to monetary authorities, possibly implying a role for CBDCs • Monetary Policy Expert Panel overall deems current policy stance as adequate • Fed keeps rates on hold amid ongoing clashes between Powell and Trump.

This paper presents the aggregated results of a survey conducted among Members of the Monetary Policy Expert Panel (MPEP) ahead of the June 2025 Monetary Dialogue with ECB President Christine Lagarde. The opinions expressed in this document are the sole responsibility of the survey respondents and should not be attributed to the European Parliament or its services.